Law · Negotiable Instruments Act, 1881
A written document signed by Mr. X contains an unconditional undertaking to pay a specific sum of ₹ 50,000 to Mr. Y one month after the death of Mr. Z. In the context of the Negotiable Instruments Act, 1881, which of the following statements correctly identifies the nature, validity, and legal status of this instrument?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Nature: Bill of Exchange; Defect: Not payable to a person or order; Legal Consequence: Invalid as a negotiable instrument.
- 2Nature: Promissory Note; Validity: Valid as a Promissory Note; Legal Status: Valid negotiable instrument because death is a certain event.✓
- 3Nature: Promissory Note; Defect: Payment contingency on an uncertain event (death); Legal Consequence: Invalid as a Promissory Note.
- 4Nature: Bill of Exchange; Defect: Amount not definite; Legal Consequence: Valid only as a contract, not a negotiable instrument.
Correct answer
Nature: Promissory Note; Validity: Valid as a Promissory Note; Legal Status: Valid negotiable instrument because death is a certain event.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Law?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Negotiable Instruments Act, 1881 MCQs →Want more practice questions on Negotiable Instruments Act, 1881?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Law · Negotiable Instruments Act, 1881